Kamilya - September 22, 2023

We debunk the most well-known car subscription myths.

For your daily commute or the occasional mountain getaway, there are plenty of mobility solutions available today: leasing, rental cars, car sharing... As the newest member of the pack, there has been the concept of auto subscriptions for some time now. Do you think it's the same as renting a car or just car sharing under a new label? We at CARIFY will show you in this blog about the myths surrounding auto subscriptions that you are mistaken.

Whether you're dreaming of cruising in a sleek Mercedes, enjoying the reliability of a VW, or opting for the affordability of a Fiat, auto subscriptions offer a unique and flexible way to experience these iconic car models.

What is an Auto Subscription?

Auto subscriptions are becoming increasingly popular in Switzerland. You sign up with a provider like CARIFY, choose your desired vehicle from the available models, and decide on a short or long term as well as a mileage plan that suits you. All costs are already included in the monthly rate, so auto subscriptions are primarily one thing: wonderfully uncomplicated.

Do you already know the differences between auto subscriptions and other ways to rent a vehicle for a specific monthly amount?

We'll reveal it to you.

Leasing vs. Auto Subscription

A leased vehicle is exclusively available to you for an agreed-upon monthly amount, even though it doesn't belong to you. In this respect, leasing and auto subscriptions are similar. However, while leasing always involves a long-term and binding lease agreement, you are much more flexible with the duration of an auto subscription.

Leasing is also complicated, lasts for several years, and has some pitfalls: Leasing models come in variations with and without a down payment. The down payment reduces (spread over the contract term) the amount of the monthly rate. Additionally, before signing the leasing contract, you have to decide whether you prefer residual value leasing or mileage leasing. With residual value leasing, you commit to buying the vehicle at an agreed-upon amount at the end of the contract term.

This amount can be higher than the actual residual value of the car, so you end up paying extra. With mileage leasing, the exact amount of the leasing rate is calculated based on your stated mileage. If it turns out at the end of the contract that you've driven more than agreed upon, you'll have to pay extra.

What are the advantages of an auto subscription?

You can determine the duration flexibly. At CARIFY, you can choose between 1 month and 4 years. So, you don't have to commit to a vehicle if you don't want to. After your subscription ends, you simply return the vehicle and have no further obligations.

But with us, you also have the option to buy your dream car after the subscription expires. You can adjust your monthly mileage package to your current needs with each new subscription. So, if you like driving the latest models and want to be particularly flexible, a short-term subscription is just right for you. Instead of complicated contracts, we at CARIFY make it especially easy for you - "Cars Made Easy," after all.

Rental Car vs. Auto Subscription

With rental cars, you typically pay per day. This makes this model interesting for short-term mobility needs. However, a long rental duration can get quite expensive. This especially applies if you won't be the only one driving the car.

Additional drivers need to be registered by name and increase the fees. In any case, you are fixed and cannot spontaneously let a friend take the wheel. If an unregistered driver has an accident with the rental car, your insurance coverage is voided. This can be very costly. With our auto subscription, on the other hand, you are free to decide who drives your car.

Another disadvantage: With rental cars, you rarely have any say in the color and model. Only the car class and some equipment features can be booked in advance. With CARIFY's auto subscription, you can see your vehicle on the website. Thanks to our many local partners and extensive offerings, you often find your dream car in many colors and equipment variants.

Car Sharing vs. Auto Subscription

You can quickly get from point A to point B in the city with car-sharing vehicles. In most cities, you'll find various car-sharing providers with fixed or variable locations. You just need the right app on your smartphone.

At the end of the trip, you either leave the vehicle at one of the provider's locations or park it wherever you want. This option is called free-floating. Billing is usually based on the number of miles driven or the duration of use. You don't have to worry about the ongoing costs of the car; they are already included. This also applies to your CARIFY subscription car.

However, car-sharing offers are unsuitable for long distances or extended rental periods.

The price per mile makes long-distance trips expensive. Moreover, car-sharing options are not available everywhere. In larger cities, you have several providers to choose from, in smaller towns, station-based car-sharing predominates, and in rural areas, you'll hardly find any providers at all. Car-sharing vehicles are also less suitable for trips to appointments or work. The vehicle is not always available where you need it.

And you have to take what's available, often compact cars with company logos. Our subscription cars come from partner garages all over Switzerland. You not only have complete freedom in choosing your vehicle - your car is always where you last parked it.

car subscription myths

Common Myths about Auto Subscriptions and What's Really True:

Are you still unsure if an auto subscription is the best solution for you? We'll clarify the four most commonly spread myths about auto subscriptions and about the new mobility concept.

1. An auto subscription is always more expensive than buying or leasing.

False! When buying a new car, you pay retail prices. If you finance the purchase amount through a loan, interest is added to that. With leasing, there are cost traps like depreciation or high penalties if you exceed the agreed-upon mileage. In both cases, you pay additional costs - whether the vehicle is parked during your vacation or you use it daily. We at CARIFY work with car dealers from all over Switzerland who purchase large quantities. We pass on the bulk discounts to you in the form of lower monthly rates.

Leasing rates are only seemingly cheaper because a down payment reduces the monthly rate, and ongoing costs for taxes and insurance are not included. Everything is included in CARIFY's auto subscription, even the Swiss vignette, regular checks, repairs, and tire changes. You benefit from our attractive insurance conditions and simply don't have to worry about anything except the next tank fill-up. Subscriptions with medium to long durations are almost always cheaper than buying or leasing.

2. With an auto subscription, you are tied to long contract durations.

False! With an auto subscription, you can usually choose between different durations. We at CARIFY offer you ultimate flexibility. You can subscribe to vehicles of all kinds with us, with durations starting from 1 month. With car purchase or leasing, you commit for much longer. With us, you choose your desired car based on the season or space requirements and can cancel for free after the minimum contract duration expires.

3. There is no choice with an auto subscription.

False! At least with CARIFY, the largest Swiss provider for auto subscriptions. With us, you can constantly choose from around 1,000 vehicles of all types and classes. You can pick popular models in your preferred color and dream configuration. With us, you'll find luxury cars, family cars, commercial vehicles, and even motorcycles from 37 brands. Whether it's a new car or a slightly used one, all vehicles are in top condition.

4. Auto subscriptions are only for individuals.

False! At CARIFY, we have particularly attractive offers for business customers. We bundle all the advantages mentioned above into a package that will convince you. With our company cars, you save costs and delight your employees with our great all-around service.

Advantages of the Auto Subscription

CARIFY's auto subscription is an all-inclusive solution. This means that all costs for the vehicles are already included in the rate. Since we broker many vehicles, we can pass on bulk purchaser conditions to our customers.

You benefit from lower prices than when buying a car. Another advantage is cost transparency. Instead of confusing individual payments for ongoing costs and monthly leasing rates, you can see at a glance with us whether you can afford the vehicle.

We've already debunked the other myths about auto subscriptions and proven the opposite to you. Flexible durations and mileage packages make the auto subscription an uncomplicated solution for almost any mobility need.

Conclusion: A Model with Many Possibilities

Upon closer examination, the circulating myths about auto subscriptions turn out to be just that. Statements like "too expensive" or "too inflexible" belong in the realm of fairy tales. In fact, the auto subscription bridges the gap between short-term rentals like car sharing or rental cars and long-term rentals or lease purchases like leasing. With a short-term subscription, you bridge waiting times while your car is being repaired.

Or you rely on a subscription car as a spacious vehicle that takes you on vacation with your family. In the summer, it's a convertible, in the winter, an SUV with all-wheel drive - all of this can be easily realized with CARIFY.

With a long-term subscription, you enjoy particularly attractive prices and the excellent service of CARIFY, while our local partners take care of inspections and ensure that your car, whether it's a Nissan, Volvo, or Skoda, is in perfect technical condition.

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In partnership with Zurich Insurance Zurich Insurance

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